13 Hf12 Headerbild

#12 Sustainable procurement

Aareal Bank Group introduced a Group-wide purchasing management function on 1 August 2018.

Group-wide purchasing management

This bundled Aareal Bank's and Aareon's purchasing units into a single competence centre. Going forward, the new centre will be responsible for purchasing and for accounts receivable and payable throughout the Group.

The goal of the new structure is to bundle activities and hence to achieve even better terms and conditions for purchasing going forward, as well as to provide more comprehensive and effective support for units involved in procurement. State-of-the-art IT systems and powerful, efficient processes will allow us to take our purchasing management activities to a new level of quality.

"Bundling procurement for the Group strengthens the entire enterprise and allows us to do more than just leverage cost benefits by negotiating as a group. By organising our activities in internal competence centres we are able to concentrate our specialist expertise and so provide services to the Company more effectively. Our customers also benefit from our lean processes, clear responsibilities and rapid decisions. We are continuing to focus on stable, equal business relationships that enable us to assess whether our business partners meet our high quality standards in the areas of ecological, social and ethical sustainability, too."

Holger Spielberg – Aareal Bank, Managing Director

In addition, purchasing management includes supplier management, which will also be managed and performed centrally going forward as a result of bundling our purchasing activities. In line with this, our Code of Conduct for Suppliers will also be employed throughout the Group and updated if necessary. The code sets the standards governing our business relationships with respect to taking responsibility for people and the environment. It is based on the principles set out in the UN Global Compact and by the International Labour Organisation (ILO).

"The competence centre structure that has now been established builds on the experience and strengths of the purchasing teams at both Aareon and Aareal Bank. It allows us not only to perform our day-to-day business but also to strategically develop competence centres as internal enablers. Our state-of-the-art digital processes will allow us to support our internal customers even more effectively in future."

Christian M. Schmahl – Aareon Management Board member

What we are working on

  • Reviewing the ethical/environmental minimum standards set out in the Code of Conduct for Suppliers
  • Switching to fair trade coffee at Aareon

Next articles